Last weekend, all 50 Senate Democrats voted against an amendment offered by Senate Finance Republican Leader Mike Crapo (R-ID) that would have protected lower- and middle-income American taxpayers against new audits by the IRS.
The Congressional Budget Office (CBO) confirms that had this amendment passed and lower- and middle-income taxpayers been protected, revenue in Democrats’ bill would have been reduced by at least $20 billion – confirming that at least $20 billion of the $124 billion in new revenue expected by a supercharged IRS will be coming from higher audits on low- and middle-income Americans.
The Joint Committee on Taxation, Congress’s official tax scorekeeper, says that from 78 percent to 90 percent of the money raised from under-reported income would likely come from those making less than $200,000 a year. Nearly half of the audits would hit Americans making $75,000 per year or less and only 4 percent to 9 percent would come from those making more than $500,000.
Do you really think these super charged audits will be fairly distributed between blue and red states? Do you trust the Biden admin IRS to not weaponize this new power to witch hunt conservatives just like how the prior Obama admin went after right wing charities and tax exempt groups?
I have no doubt Schedule F and 1099s are going to be targeted, too.
That’s why they’re having PayPal and Venmo and other companies issue 1099’s every year. Billionaires aren’t using Venmo to get around their taxes. Hair stylists, contractors, dog walkers, tutors, and people like that get paid that way plenty of times and now they’re coming for them.
I expect a new cash economy will form for those folks.